The winning consortium to operate telecom services in Ethiopia − the Global Partnership for Ethiopia − has embraced the decision by the country’s government to award it the licence, saying it aims to start operating next year.
The partners in the consortium, led by Safaricom, includes Vodacom Group, Vodafone Group, Sumitomo Corporation and CDC Group – the UK’s development finance institution and impact investor.
The consortium was awarded a new telecommunications operating licence over the weekend, following an extensive process that was originally scheduled for 5 March but then moved to 26 April after the Ethiopian Communications Authority agreed to an extension.
The Global Partnership for Ethiopia is expected to invest $8.5 billion in its network over the next 10 years.
Welcoming the decision on Monday, Shameel Joosub, CEO of Vodacom Group, said: “The consortium partners have a great track record for delivering transformative technology services, particularly when it comes to health, education and agriculture, built on quality telecom networks.
“We want to make a real difference to the lives of Ethiopians through promoting widespread digital inclusion as part of Vodacom’s pledge to connect the next 100 million Africans by 2025.”
Similarly, Peter Ndegwa, CEO of Safaricom, said: “We are excited for the opportunity to work with the people of Ethiopia to set up telecom networks to deliver a digital lifestyle.
“In past years, we have seen the power of digital transformation and its impact on our customers. We believe by working with all stakeholders in Ethiopia, we can deliver a similar transformation while achieving a sustainable return to our shareholders.”
Nick Read, CEO of Vodafone Group, noted: “This is a significant development for Ethiopia, which is one of the last very large markets in the world to introduce telecom competition. We want to play a transformational role in ensuring Ethiopia’s huge economic and developmental potential is realised through the deployment of next-generation connectivity and digital services, creating an inclusive and sustainable digital society.”
The winning consortium out-bid other leading telcos such as Africa’s largest mobile operator, MTN, which has a footprint in 22 countries across Africa and the Middle East.
MTN has had a representative office in Ethiopia for a number of years but fell short in the bidding process against the Global Partnership for Ethiopia.
The Horn of Africa nation has a population of around 100 million people, making it Africa's second largest nation, after Nigeria, and an appealing market in which to offer mobile and fixed-line services.
Commenting on the licence, Tenbite Ermias, CDC Group head of Africa, said: “Modern, stable and flourishing economies are built on reliable, affordable digital infrastructure, and access to global trade. We are ready to roll out a state-of-the-art network that will bring vital economic opportunities to tens of millions of Ethiopians, from urban dwellers to farmers, and to businesses large and small.
“This outcome has the power to unlock development over time and is great news for Ethiopians across the country.”
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